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Lumsum one time alimony payment

Dear Experts,

It is unfortunate that i am getting a divorce with mutul consent.

I am businessman and i own a property which i have sell to pay my one time alimony and there is one more apartment which is owned by my wife. So as per our agreement i have to sell the house i own and she can transfer the apartment which is in her name to me as she does not want it.

So my question to you is that " Can i adjust part of my alimony payment to her for transfering that apartment to my name angainst capital gains amount for house i will sell to pay alimony?" I intend adjust only cost i bought that apartment in her name more then 3 yers ago. Is this possible? OR what should be best way settle this matter? Sell both properties? She gets part by selling apartment and part by house i sell? I just want to keep that small apartment for me to live. But i can agree to sell if its better for taxation purposes.

Plese help me get over this messy sitution?

Regards

Vijay Maheshwari

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1 Replies

R RAJAGOPALAN (ADVOCATE) 07 September 2012

Your Query: " Can i adjust part of my alimony payment to her for transfering that apartment to my name angainst capital gains amount for house i will sell to pay alimony?" I intend adjust only cost i bought that apartment in her name more then 3 yers ago. Is this possible? OR what should be best way settle this matter? Sell both properties? She gets part by selling apartment and part by house i sell? I just want to keep that small apartment for me to live. But i can agree to sell if its better for taxation purposes.Plese help me get over this messy sitution?

Reply: Before formal divorce,why not transfer/gift, in lieu of the lump sum alimony, the apartment to her, and she transfer/gift the other flat to you? Will this not avoid the income tax problems?